A young man wishes to accumulate $350,000 at the end of five years  so that he may make a down payment on a piece of land which cost $2,250,000.00.

a)   What should his equal end of year deposit be to accumulate $350,000 at 10% rate of interest?
(b)  If the young man receive the remaining portion of the Cost of the land from a financial institution at a rate of interest of 20% to be repaid over 5 years.

(i)  Calculate the annual payment each year.
(ii)  Prepare the amortization schedule for the loan.

Answer rating: 100% (QA)

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